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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (242)	4/25/1999 1:13:00 AM
From: Razorbak	Read Replies (2) \| Respond to of 752

Henry, here is a link to an ongoing discussion about the RRRR convertibles and the conversion formula. #reply-8982814 Apparently there is a floor at $2.49/share, but that's quite a bit lower than the stock's currently trading. And here is the going concern opinion... <<Independent Auditors' Report The Board of Directors and Stockholders Rare Medium Group, Inc.: We have audited the accompanying consolidated balance sheet of Rare Medium Group, Inc. as of December 31, 1998 and the related consolidated statements of operations, changes in stockholders' equity (deficit) and cash flows for the year then ended. These consolidated financial statements are the responsibility of Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The consolidated financial statements of the Company as of December 31, 1997 and for each of the years in the two-year period ended December 31, 1997 were audited by other auditors whose report, dated March 20, 1998, on those statements included an explanatory paragraph that states that the Company has incurred losses accumulating to $54,184,410 through December 31, 1997, which raises substantial doubt of their ability to continue as a going concern. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Rare Medium Group, Inc. as of December 31, 1998 and the results of their operations and their cash flows for the year then ended in conformity with generally accepted accounting principles. The accompanying consolidated financial statements have been prepared assuming that Rare Medium Group, Inc. will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered net losses and losses from continuing operations, has a working capital deficiency and has incurred accumulated losses through December 31, 1998. These factors, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. KPMG LLP New York, New York March 29, 1999>> Trading above $16 after a good run-up, it might be a good short opportunity from here. quote.yahoo.com Just my two cents. Razor

To: Henry Volquardsen who wrote (242)	4/25/1999 1:30:00 AM
From: Mary Baker	Read Replies (2) \| Respond to of 752

Thanks Henry... Going now to bring in all pertinent info... To the others here: Anyway...darn right I am learning...I have over a "20 bagger" I guess is the parlance...and not sure whether to stay or take it "off the table" (and even though I may be naive on many aspects) I have had other 20 baggers and MORE...Sorry don't mean to take it out on you... But...maybe the less you know sometimes works to your advantage (don't go crazy with that one please!)...since I tend to stay long......it has paid off so far! And since I have holdings like AOL, DCLK and XMCM...I don't follow them on a daily basis...RRRR is the one that I need to REALLY sift thru and know if this is SHORTER scare tactics or if I need to have a justified concern...I am not a trader by nature and Long to me means JUST that!! But...I am willing to maybe trade this one on Monday if need be! I think this company will really make it based on business model, sector, acquistions, venture capital etc....but others seem to think differently. Mary